FACTORS INFLUENCING THE NEED FOR PERFORMING CONSUMER COOPERATIVE SOCIETIES IN NAIROBI KENYA.

Abstract

Consumers in Kenya continue to face exploitation because of the privatization of most of the organizations that supply goods. This is due to failure to form a performing and well managed consumer cooperative in Kenya. The main aim of the study was to assess the factors influencing the need to establish performing consumer cooperatives in Nairobi, Kenya. The researcher used a descriptive survey research design, which was considered appropriate in this kind of study because it targeted a large population of members of COMOCO SACCO. This target population included both ordinary and employee’ members. The researcher targeted the members of COMOCO SACCO because they already have the working knowledge of co-operatives and are consumers who buy goods from small scale shops and minisupermarkets. The researcher used a questionnaire as a key tool for data collection. The questionnaire was pretested through a pilot study of 7 respondents. The pilot study indicated that the instrument was valid and reliable for the purpose of this study. Purposive sampling technique was used to select a sample of 10 employees as respondents which was desirable for the purpose of the study. Meanwhile, a systematic sampling technique was applied to select 60 respondents from ordinary members. The total sample size therefore comprised 70 respondents, out of which, 66 successfully completed the survey questionnaire. Data analysis was done using descriptive statistics whereby data was presented in form of percentages, tables, graphs and pie charts. The software used to simplify the data analysis procedure was MS excel. The findings from the study revealed that, the level of awareness of the potentials of consumer cooperatives is low; and that the consumer cooperatives are profitable to invest in, but only if well managed. Also, favorable socio-economic conditions that can influence people to promote consumer cooperatives were identified as exploitation by readily established retail stores and enhancement of consumers’ quality of life. The prime strategies that can be used to promote a performing consumer cooperative were identified as competitive pricing and effective customer care. The researcher concluded that a need exists to establish viable consumer cooperatives in Nairobi Kenya and therefore substantial efforts should be directed towards the promotion of this type of co-operative. The researcher recommended the need for an extensive public education programme to inform people what the consumer co-operatives entail and how they can benefit from them.